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  • Writer's pictureAccountant High Wycombe

How Should you Manage Your Accounting: with an Accountant or Management Software?

Entrepreneurs, as you know, keeping an account is mandatory! The good management of your accounting is one of the keys to the sustainability of your business activity . While this can be a sometimes complex exercise, and it may put off more than one, especially if you're not an accounting expert, it's still essential . Indeed, it allows you:

  1. To understand your main expense and income items.

  2. Improve the management of your company and avoid the rejection of accounting by the tax authorities.

  3. To control the inflation of your costs.

  4. To anticipate the variations of activity so as not to be caught off guard.

In short, your accounting will help you in all your decisions. The question then arises as to how you will keep your accounts . Call an accountant? Use management software ? Combine the two? Living on love and fresh water ? Kiwili asked the question for you! We propose to analyze the advantages of its two options that can be very complementary. Let's go !

1. Manage your own accounting

1.1 Choosing accounting software (and knowing what to do with it)

If you want to keep your accounting alone, a management and accounting software is very useful, even essential, and this, from the creation of your company. Once configured correctly, it will avoid many repetitive and time-consuming tasks. It will also limit human errors, which you could do by manually calculating for example (although it must always be attentive). There are actually two types of software:

Accounting software in the form of a computer program, purchased or developed internally by the company, which will be installed on a computer. Updates must be made by the Contractor to ensure proper operation of the software and all users must install it for use. They are generally very expensive and are more suitable for larger companies.

The software on the internet, a SAAS (Software As a Service). Hosting is done in the cloud by the service provider and the contractor pays a fixed monthly fee to access the online platform. You do not need to install software on your computer or perform updates because each user accesses the software remotely.

Each software has its particularities and strengths, but we advise you to opt for a simple, flexible and ergonomically optimized accounting software . It's also important to be able to test it to see if it's right for you. Does it have the desired features? Does it fit the profile of your business? Does it meet your expectations? Is the after-sales service efficient and the price is right? It must especially that it brings enough features to avoid you having to juggle between several software! In short, an accounting software must allow you to:

  1. Ensure the maintenance of your accounts and retranscribe all transactions made during a defined period of time.

  2. Track the financial transactions of your customers, suppliers, employees or associates if you have them, as well as your bank.

  3. To know the performance of your company by comparing actual performance with planned performance.

  4. Save you time by automating the creation of certain documents (invoices, quotes, customer profile, etc.).

With management software, you have real-time accounting and financial information of your company , with an overview of your company's financial situation and forecasts (revenue, expenses, profitability). If you have opted for an online solution such as Kiwili, this data will be accessible to all your employees directly via your internet browser.

1.2 A SAAS, the Perfect Solution?

The advantage of the company's bookkeeping is that it uses its internal resources to do the work. This solution is therefore the least expensive . It is also an opportunity to become aware of the administrative and financial aspect of his project because he must ensure himself compliance with its accounting obligations . Even so, even if you do not need to be an expert in accounting, it's better to have some notions and time to give it. Because this is its main disadvantage, time. This method initially requires a large personal investment. Keeping one's own accounting involves having good knowledge of the terms used in accounting and constantly updating oneself about regulations.

For the self-employed, this may lead to a decrease in turnover as fewer hours will be spent on business development or professional development. For the head of a small business, hours allocated to accounting are not used for the management and monitoring of business activities. There is, however, the possibility of delegating some of the accounting work to an employee, such as an administrative assistant. Also, even if it is possible, it should not be completely exempt from the expertise of accounting professionals.

2. Call an Accountant

2.1 A Real know-how

Collaborating with an accountant is not mandatory , but it remains a preferred partner for your business. Outsourcing your accounting has many advantages. The first is that you entrust it to a professional expert in legal and tax matters, which can avoid making risky mistakes and wasting unnecessary time. It can, among other things:

Intervene in the first stage of business creation by advising you in your choice of company status .

Take care of all the administrative formalities such as the drafting of the statutes, the filing of documents for the creation of your company, the verification of Kbis, to send a notification to your landlord if you register your home as a registered office, etc.

You supervise and accompany you from the beginning for all the accounting part and can give you many accounting and financial advice.

Maintain your accounting and manage payment deadlines or administrative and tax returns.

Take care of your balance sheet and keep your books and records obligatory.

Inform you of legal and tax changes that may occur (tax rates, charges, sector news, etc.).

Prepare your business for an audit.

Plan your growth, calculate your profitability and develop a financial strategy.

Hiring an accountant can be a major asset in business management. Even if you are able to take care of the daily general accounting of your company, the accountant can bring you an expertise that will save you in the long run. What do you know about tax-deductible business expenses ? From the development of financial strategies? The expert is there to avoid that you find yourself in a situation where you are disadvantaged by an error that could have been avoided.

2.2 ... but who has a cost!

Entrusting your accounting to a professional is an investment that saves you time by relieving you of a heavy workload. It gives you more time to focus on your core business. In general, a company chooses to outsource all of its accounting, tax and legal duties. The accountant looks after the details and gives you the opportunity to focus on your income. The main advantage of keeping one's accounting oneself is the major disadvantage.

Investment in money is definitely more important when outsourcing accounting services compared to the accounting that we do yourself. If you decide to hire an accountant, check that he is registered with the Chartered Accountants in France and the Order of Chartered Professional Accountants of Quebec . Also find out about his experience, his references, his availability, the extent of his mission and check his rate.

Our Opinion

Having a dedicated accountant may not be the priority for your business, but its expertise is not to be neglected and can earn you much more than the initial investment. Also, we recommend that you consult an accountant annually as well as at different fundamental stages of your business development to ensure that you manage your finances and prevent costly mistakes. It's up to you to evaluate your accounting skills and determine if they are suitable for your situation and your needs. If you are self-employed or own a small business, you can keep your daily general ledger. However, it is necessary to be well organized and use online accounting and management software such as Kiwili .

This practice will make it easier for your accountant during your consultations and allow you to have a real follow-up of your finances. Kiwili is a management software specially designed for self-employed and self-employed entrepreneurs, small businesses. There are several subscription plans depending on the features you need for managing your business. Whatever formula you choose, you can test the Kiwili tool for free for a month ! In addition, Kiwili offers many benefits that do not offer these competitors . Finally, whatever the option you choose, do not forget to keep, order and archive all your useful documents to keep your accounting and read our 6 tips for managing your business accounting .

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